Darrell Webb

Thanks Jeff.

Operator

Our next question comes from the line of Anthony Lebiedzinski from Sidoti & Company. Your line is open.

Anthony Lebiedzinski – Sidoti & Company, LLC

Good afternoon. My first question is regarding your earnings guidance, is it safe to say that you guys are extrapolating current trends through the rest of the year and assuming that business stays where it is you would do $0.70 to $0.85 in earnings? Is that safe to say?
James Kerr

I think our guidance is primarily driven by the same store sales assumption. If you look at that range and you look at how we preformed, if you combine the third and fourth quarters that actual is baked in to next year’s range.

Anthony Lebiedzinski – Sidoti & Company, LLC

Okay. And also given that you’re substantially reducing your debt over here, is your guidance already assuming lower interest costs?

James Kerr

Yes, we would expect interest to be reduced by probably over $2 million next year.

Anthony Lebiedzinski – Sidoti & Company, LLC

Okay. So, given the free cash flow projection that you have given here is it safe to assume that you’re going to use that entirely for debt reduction or is there any other usages of cash flow that you forecast?

James Kerr

There’s no significant use and our free cash flow would include the $30 to $32 million of capital spending that we’ll do this year. In terms of debt buyback, we’re comfortable where we sit today like I said in my script, $52 million worth of our senior subordinated notes outstanding as of today. We’re not actively in the market right now and we’ll see how the year plays out and see if we can still pick up some at a discount to Par but no significant plans at this point.

Darrell Webb

Anthony, I would just add that at each Board meeting we certainly have a robust conversation about plans for free cash flow, things ranging from ramping up our store construction to debt buyback, stock buyback, dividends, strategic acquisitions, even international expansion and as you’ve seen thus far the priority has been on the debt buyback side. Beyond that we’ll continue to monitor it and see where we go longer term.

Anthony Lebiedzinski – Sidoti & Company, LLC

Just a couple of more questions, as far as the product sourcing can you quantify what percentage of your product sales you think this year will be driven by the product sourcing versus last year? Can you give us a quantification here?

James Kerr